SGOV Looks Attractive, But Upcoming Rate Cuts Should Deteriorate Income Opportunity

  • SGOV has been a reliable income generator, but its yield is declining, making it less attractive compared to TLT with more upside potential. The Fed's likely rate cuts in 2025 will further reduce SGOV's yield, while TLT could benefit from rising bond prices in a lower-rate environment. SGOV's dividend income has dropped from over 5% to 4.37%, and longer-duration bonds like TLT offer better prospects as rates decline.